The upcoming discussion will update you about the difference between total utility and marginal utility. Utility, in ordinary sense, means usefulness. But, in economics, it means want-satisfying power of a commodity or service — the power to satisfy a human want. Thus, a pen has utility to a teacher but not to an illiterate farmer. As Joan Robinson comment: "Utility [...]
In this article we will discuss about the relationship between price elasticity of demand and marginal utility. We often draw a distinction between necessities and luxuries. While it is possible to do without a luxury good like a VCR it is not easy to go without a necessary good to one individual may be a luxury good to another individual. [...]
In this article we will discuss about the cross elasticity of demand, explained with the help of suitable diagram. Cross elasticity provides a convenient basis for studying the relationship between two different commodities. Cross elasticity of demand is the degree to which the quantity demanded of one commodity responds to a change in the market price of another commodity. The [...]